Endang Mulyani, Jakarta – The Tourism Ministry has warned of rising accommodation scams linked to illegal villa rentals promoted through social media, as the government moves to tighten regulations on tourism businesses and online travel platforms ahead of an expected surge in foreign tourist arrivals.

Tourism Minister Widiyanti Putri Wardhana said many short-term accommodation providers, particularly villas, continue operating without proper permits, creating risks for tourists while also hurting government tax revenues and licensed hotel operators.

"We once again urge tourism business operators to immediately fulfill their business licensing obligations so they can continue operating legally and sustainably," Widiyanti said during a press conference on tourism accommodation governance on Tuesday.

The government said complaints have also emerged from hotels reporting lower occupancy rates as travelers increasingly choose cheaper villa rentals, many of which allegedly operate illegally and do not pay taxes.

"We want to improve governance so that security and service quality for tourists can be better guaranteed," Widiyanti said.

The ministry is also planning to collaborate with the Trade Ministry and the Communications and Digital Ministry to regulate and monitor illegal accommodation sales conducted through social media platforms.

Authorities in Special Region of Yogyakarta previously reported a growing number of accommodation fraud cases linked to transactions made through social media. The government is therefore advising tourists to book accommodations through official platforms or registered travel agents instead of informal social media channels.

To strengthen oversight, the government plans to introduce an Application Programming Interface (API)-based verification system for accommodation services. The system will undergo a 12-month transition period from June 1, 2026 to June 1, 2027 before becoming fully operational.

Once implemented, the system will automatically verify whether accommodation providers possess valid business licenses. Businesses operating without permits could face delisting from online platforms.

Online travel agencies (OTAs) will also receive a two-month grace period to notify merchants lacking permits and allow them time to process licenses. Businesses failing to comply by Aug. 1, 2026 could be removed from OTA platforms.

The Tourism Ministry is working with nine OTA partners, including Airbnb, Traveloka, and Booking.com, as part of broader efforts to improve governance in Indonesia's tourism accommodation sector.

The ministry has also organized six coaching clinics for tourism business operators involving more than 1,500 participants throughout 2026 and introduced merchant and host licensing verification through the Accommodation Business Form.

According to the ministry, the number of tourism accommodation businesses registered in Indonesia's Online Single Submission (OSS) system reached 100,830 units as of May 20, up 46.5% from 68,830 units in March 2025.

Villa and apartment hotel businesses recorded the strongest growth, each rising by more than 75%, reflecting improving compliance with tourism licensing requirements.

Widiyanti said the government also produced licensing guide videos distributed through OTA platforms to help operators better understand Indonesia's tourism regulations.

Indonesia aims to attract between 16 million and 17 million foreign tourist arrivals this year, surpassing pre-pandemic levels when the country welcomed around 16 million international visitors annually. The government sees stronger oversight and licensing enforcement as essential to improving traveler confidence and maintaining the credibility of Indonesia's tourism industry.

The government also urged compliance with Government Regulation No. 28/2025, which requires all online travel agencies operating in Indonesia to register as business entities, obtain Business Identification Numbers (NIB), secure proper business classifications, and maintain offices in Indonesia.

Source: https://jakartaglobe.id/lifestyle/tourism-ministry-targets-illegal-villa-rentals-sold-on-social-medi